India to Fund Research for Critical Minerals Extraction Technology

India is taking steps to bolster its critical minerals industry by providing financial support to research institutes. This initiative aims to offer technical assistance to miners, as the country seeks to reduce its heavy reliance on imports of essential materials such as lithium and rare earth minerals.

India's government is considering allocating approximately $50 million to fund collaborations between research institutes and companies. These partnerships will focus on developing advanced extraction technologies and improving beneficiation methods for critical minerals. Beneficiation is a crucial process that enhances the economic value of ore before it undergoes further processing into metals.

The Ministry of Mines has reached out to several research institutes, including the CSIR-National Institute for Interdisciplinary Science and Technology (NIIST), requesting their expertise in extracting critical minerals. In a letter dated July 11, 2024, the ministry emphasized the need for tailored extraction techniques due to the complex nature of critical minerals often found associated with other minerals or metals in auctioned blocks.

This funding initiative comes in response to previous challenges faced by India in establishing a robust critical minerals mining industry. While the country successfully awarded development rights for a lithium block in Chhattisgarh state in June 2024, an attempt to auction lithium blocks in Jammu and Kashmir failed to attract investors due to low mineral concentration and high extraction costs.

To address these challenges, the government plans to invite joint proposals from research institutes and companies. Approved projects could receive up to 75% of the total funding, demonstrating India's commitment to developing domestic capabilities in critical mineral extraction.

"As most of the critical minerals are not extracted in the country, the economical and successful extraction of these critical and strategic minerals by companies requires support and guidance on extraction and beneficiation techniques."

The development of a domestic critical minerals industry is crucial for India's energy transition efforts and technological advancement. Critical minerals, including lithium and rare earth elements, play a vital role in modern technologies, particularly in renewable energy and electric vehicle production. By investing in research and development, India aims to enhance its economic and strategic position in the global critical minerals market.

This initiative aligns with the growing global demand for critical minerals, which is expected to increase significantly in the coming decades. As countries worldwide strive to reduce their carbon footprint and transition to cleaner energy sources, the importance of securing a stable supply of these essential materials becomes paramount.

By fostering collaboration between research institutes and mining companies, India hopes to overcome the technical challenges associated with critical mineral extraction. The success of this endeavor could potentially transform the country's mineral industry, reducing its dependence on imports and positioning India as a key player in the global critical minerals supply chain.